Cenvat credit cannot be denied solely because the supplier did not avail an exemption notification; interim relief was granted.

Credit under indirect tax law could not be denied merely because the supplier had not availed the exemption notification, at least at the prima facie stage. The Tribunal held that this objection was insufficient to defeat the applicants' claim for interim relief and found that they were entitled to protection pending the appeals. As a result, waiver of predeposit was granted and recovery proceedings were stayed.

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Issues: Whether credit could be denied on the ground that the supplier had not availed the exemption notification and whether waiver of predeposit and stay of recovery were warranted.

Analysis: The Tribunal noted, at the prima facie stage, that credit could not be denied merely because the supplier had not availed the exemption notification. On that basis, the applicants were found entitled to interim protection during the pendency of the appeals.

Conclusion: The stay applications were allowed. Waiver of predeposit was granted and recovery was stayed.

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